**Question 3** (1 point)

**Listen**

Using the information below, SOLVE the required Event Budget information:

_______________________________________________________________________________________________________________________

Overhead costs are estimated to be 22% of the event gross profit

________________________________________________________________________________________________________________________

Event Budget

Description

Total $

**%**

Revenue

Eary Bird Registration

$25,048

Regular Registration

$23,349

**? ?  SOLVE ? ?**

On-site Registration

$10,301

Sponsorships

$8,170

Merchandising Sales

$5,510

Total Revenue

Direct Expenses

AV

$18,356

Bar Service

$34,907

Chattels

$7,900

Décor

$3,270

Food Stations

$23,972

Hors d'oeuvres

$8,500

Security

$8,926

Venue

$14,649

Total Direct Expenses

Gross Profit

Overhead Costs

Net Profit/-Loss

****

Type your answer in the textbox below.  Keep 1 decimal place, and express as a whole number, not as a decimal (ie 51.1% not .511).  Do not include % signs.

Your Answer:

Question 3 options:

Answer

To solve this, we need to follow these steps to determine the event budget and the percentages.

### Step 1: **Calculate Total Revenue**
Sum up all the revenue streams:
- Early Bird Registration = $25,048
- Regular Registration = $23,349
- On-site Registration = $10,301
- Sponsorships = $8,170
- Merchandising Sales = $5,510

\[
\text{Total Revenue} = 25,048 + 23,349 + 10,301 + 8,170 + 5,510 = 72,378
\]

So, **Total Revenue = $72,378**.

### Step 2: **Calculate Total Direct Expenses**
Add up all the direct expenses:
- AV = $18,356
- Bar Service = $34,907
- Chattels = $7,900
- Décor = $3,270
- Food Stations = $23,972
- Hors d'oeuvres = $8,500
- Security = $8,926
- Venue = $14,649

\[
\text{Total Direct Expenses} = 18,356 + 34,907 + 7,900 + 3,270 + 23,972 + 8,500 + 8,926 + 14,649 = 120,480
\]

So, **Total Direct Expenses = $120,480**.

### Step 3: **Calculate Gross Profit**
Gross Profit = Total Revenue - Total Direct Expenses:

\[
\text{Gross Profit} = 72,378 - 120,480 = -48,102
\]

So, the **Gross Profit = -$48,102**.

### Step 4: **Calculate Overhead Costs**
Overhead costs are 22% of the event gross profit:

\[
\text{Overhead Costs} = 0.22 \times (-48,102) = -10,582.44
\]

So, **Overhead Costs = -$10,582.44**.

### Step 5: **Calculate Net Profit/-Loss**
Net Profit = Gross Profit - Overhead Costs:

\[
\text{Net Profit} = -48,102 - (-10,582.44) = -48,102 + 10,582.44 = -37,519.56
\]

So, the **Net Profit = -$37,519.56** (a net loss).

---

Would you like more details on this calculation? Here are some further related questions:

1. What is the break-even point for the event?
2. How would increasing revenue from Sponsorships affect the Net Profit?
3. What impact would reducing the Bar Service cost by 10% have on Gross Profit?
4. How does the percentage of overhead costs compare to other expense categories?
5. What is the percentage of each revenue stream relative to the total revenue?

**Tip:** Always recheck overhead percentages when calculating for losses.

Using the information below, SOLVE the required Event Budget information:
Overhead costs are estimated to be 22% of the event gross profit
Event Budget Description
Revenue:
Early Bird Registration $25,048
Regular Registration $23,349
On-site Registration $10,301
Sponsorships $8,170
Merchandising Sales $5,510
Total Revenue
Direct Expenses:
AV $18,356
Bar Service $34,907
Chattels $7,900
Décor $3,270
Food Stations $23,972
Hors d'oeuvres $8,500
Security $8,926
Venue $14,649
Total Direct Expenses
Gross Profit
Overhead Costs
Net Profit/-Loss

Learn how to calculate the event budget using basic arithmetic and percentage calculations. This includes determining total revenue, direct expenses, gross profit, overhead costs, and net profit or loss. The problem covers real-world applications suitable for Grades 10-12.

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